AN ACT Relating to providers of commercial transportation1services; amending RCW 18.235.020, 46.72.010, 51.12.020, and281.72.240; reenacting and amending RCW 42.56.270 and 43.79A.040;3adding a new chapter to Title 46 RCW; and repealing RCW 46.72.073,446.72A.053, 51.12.180, 51.12.183, 51.12.185, 51.16.240, and581.72.230.6

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:7

NEW SECTION. Sec. 1. The definitions in this section apply8throughout this chapter unless the context clearly requires9otherwise.10

(1) "Department" means the department of licensing.11(2) "Personal vehicle" means a vehicle that is used by a12

transportation network company driver in connection with providing13services for a transportation network company that meets the vehicle14criteria in this chapter and that is authorized by the transportation15network company.16

(3) "Prearranged ride" means a route of travel between points17chosen by the passenger and arranged with a driver through the use of18a transportation network company's digital network or software19application. The ride begins when a driver accepts a requested ride20through a digital network or software application, continues while21

ENGROSSED SUBSTITUTE SENATE BILL 5550

State of Washington 64th Legislature 2015 Regular SessionBy Senate Transportation (originally sponsored by Senators Habib andFain)READ FIRST TIME 02/27/15.

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the driver transports the passenger in a personal vehicle, and ends1when the passenger departs from the personal vehicle.2

(4) "Transportation network company" means a corporation,3partnership, sole proprietorship, or other entity, operating in4Washington, that uses a digital network or software application to5connect passengers to drivers for the purpose of providing a6prearranged ride. A transportation network company is neither a7taxicab company, passenger charter carrier, or auto transportation8company, as described in Title 81 RCW, nor a limousine or for hire9operator, as defined in this title. A transportation network company10is not deemed to own, control, operate, or manage the personal11vehicles used by transportation network company drivers. A12transportation network company does not include a political13subdivision or other entity exempt from federal income tax under 2614U.S.C. Sec. 115 of the federal internal revenue code.15

(5) "Transportation network company driver" or "driver" means an16individual who uses a personal vehicle to provide services for17passengers matched through a transportation network company's digital18network or software application. A driver is not a for hire operator19as that term is used in this title.20

(6) "Transportation network company passenger" or "passenger"21means a passenger in a personal vehicle for whom transport is22provided, including:23

(a) An individual who uses a transportation network company's24digital network or software application to connect with a driver to25obtain services in the driver's vehicle for the individual and anyone26in the individual's party; or27

(b) Anyone for whom another individual uses a transportation28network company's digital network or software application to connect29with a driver to obtain services in the driver's vehicle.30

(7) "Transportation network company services" or "services" means31all times the driver is logged in to a transportation network32company's digital network or software application or until the33passenger has left the personal vehicle, whichever is later. The term34does not include services provided either directly or under contract35with a political subdivision or other entity exempt from federal36income tax under 26 U.S.C. Sec. 115 of the federal internal revenue37code.38

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NEW SECTION. Sec. 2. (1)(a) A transportation network company1must comply with the requirements of this chapter, including those2relating to a driver's compliance with insurance, qualification,3conduct, nondiscrimination, maximum work hours, criminal history, and4driving record requirements. Any penalty for a violation of this5chapter may be assessed only against the transportation network6company, unless (i) the transportation network company could not have7reasonably known of the violation or (ii) the transportation network8company knew of the violation and expeditiously took action to9address the violation to the satisfaction of the department.10

(b) This chapter does not relieve a driver from complying with11requirements applicable to private vehicles set out in this title,12including those relating to drivers' licenses, vehicle registrations,13minimum insurance, rules of the road, and the penalties associated14with any violation. A transportation network company driver is not15required to register the vehicle the driver uses for transportation16network company services as a commercial or for hire vehicle solely17because the driver uses the vehicle to provide transportation network18company services.19

(2) Except as provided in rules adopted by the department20pursuant to this chapter, chapter 18.235 RCW governs unlicensed21practice, unprofessional conduct, the issuance and denial of permits,22and the discipline of permittees under this chapter.23

(3) A transportation network company must comply with the24registered agent requirements of chapter 23B.05 RCW.25

(4) Pursuant to rules adopted by the department that are26consistent with public safety and consumer protection, every27transportation network company operating under this chapter must28submit a quarterly report to the department, providing at a minimum29the total number of drivers using its digital network or software30application, the total number of prearranged rides, the total hours31that drivers are logged in to its network, the total hours spent32providing transportation network company services, and describing any33accident in which a personal vehicle was involved while carrying a34passenger.35

(5) A transportation network company may not, with respect to36drivers using its digital network or software application, or drivers37using the digital network or software application of another38transportation network company, require drivers to agree to a39noncompetition agreement or otherwise prohibit a driver from working40

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with another transportation network company. However, a1transportation network company may prohibit a driver's use of any2brand or mark of the company in a way that is confusing to the3public.4

(6) Every transportation network company must, if achievable,5make its digital network or software application accessible to6persons with disabilities.7

NEW SECTION. Sec. 3. (1)(a) Before being used to provide8transportation network company services, every personal vehicle must9be covered by a primary automobile insurance policy that specifically10covers transportation network company services. However, the11insurance coverage requirements of this section are alternatively12satisfied by securing coverage pursuant to chapter 46.72 or 46.72A13RCW that covers the personal vehicle being used to provide14transportation network company services and that is in effect twenty-15four hours per day, seven days per week. Except as provided in16subsection (2) of this section, a transportation network company must17secure this policy for every personal vehicle used to provide18transportation network company services. For purposes of this19section, a "primary automobile insurance policy" is not a private20passenger automobile insurance policy.21

(b) The primary automobile insurance policy required under this22section must provide coverage, as specified in this subsection23(1)(b), at all times the driver is logged in to a transportation24network company's digital network or software application and at all25times a passenger is in the vehicle as part of a prearranged ride.26

(i) The primary automobile insurance policy required under this27subsection must provide liability coverage, during transportation28network company services applicable during the period before a driver29accepts a requested ride through a digital network or software30application, in an amount no less than fifty thousand dollars per31person for bodily injury, one hundred thousand dollars per accident32for bodily injury of all persons, and thirty thousand dollars for33damage to property.34

(ii) The primary automobile insurance policy required under this35subsection must provide the following coverages, applicable during36the period of a prearranged ride:37

(A) Combined single limit liability coverage in the amount of one38million dollars for death, personal injury, and property damage; and39

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(B) Uninsured motorist coverage and underinsured motorist1coverage in the amount of one million dollars.2

(2)(a) As an alternative to the provisions of subsection (1) of3this section, if the office of the insurance commissioner approves4the offering of an insurance policy that recognizes that a person is5acting as a transportation network company driver and using a6personal vehicle to provide transportation network company services,7a driver may secure a primary automobile insurance policy covering a8personal vehicle and providing the same coverage as required in9subsection (1) of this section. The policy coverage may be in the10form of a rider to, or endorsement of, the driver's private passenger11automobile insurance policy only if approved as such by the office of12the insurance commissioner.13

(b) If the primary automobile insurance policy maintained by a14driver to meet the obligation of this section does not provide15coverage for any reason, including that the policy lapsed or did not16exist, the transportation network company must provide the coverage17required under this section beginning with the first dollar of a18claim.19

(c) The primary automobile insurance policy required under this20subsection and subsection (1) of this section may be secured by any21of the following:22

(i) The transportation network company as provided under23subsection (1) of this section;24

(ii) The driver as provided under (a) of this subsection; or25(iii) A combination of both the transportation network company26

and the driver.27(3) The insurer or insurers providing coverage under subsections28

(1) and (2) of this section are the only insurers having the duty to29defend any liability claim from an accident occurring while30transportation network company services are being provided.31

(4) In addition to the requirements in subsections (1) and (2) of32this section, before allowing a person to provide transportation33network company services as a driver, a transportation network34company must provide written proof to the driver that the35transportation network company driver is covered by a primary36automobile insurance policy that meets the requirements of this37section.38

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(5)(a) If a transportation network company maintains a primary1automobile insurance policy to satisfy the obligations of this2section, it must provide proof of the policy to the department.3

(b) Alternatively, if a driver purchases a primary automobile4insurance policy as allowed under subsection (2) of this section, the5transportation network company must verify that the driver has done6so. Additionally, the transportation network company must provide7proof to the department of the insurance required under subsection8(2)(b) of this section.9

(c) Upon request from the department, drivers and transportation10network companies must provide copies of the policies required under11this section to the department.12

(6) A primary automobile insurance policy required under13subsection (1) or (2) of this section may be placed with an insurer14licensed under Title 48 RCW to provide insurance in the state of15Washington or as an eligible surplus line insurance policy as16described in RCW 48.15.040.17

(7) Nothing in this section shall be construed to require a18private passenger automobile insurance policy to provide primary or19excess coverage or a duty to defend for the period of time in which a20driver is logged in to a transportation network company's digital21network or software application or while a passenger is in the22vehicle.23

(8) If more than one insurance policy provides valid and24collectible coverage for a loss arising out of an occurrence25involving a motor vehicle operated by a driver, the responsibility26for the claim must be divided as follows:27

(a) Except as provided otherwise under subsection (2)(c) of this28section, if the driver has been matched with a passenger and is29traveling to pick up the passenger, or the driver is providing30services to a passenger, the transportation network company that31matched the driver and passenger must provide insurance coverage; or32

(b) If the driver is logged in to more than one transportation33network company digital network or software application but has not34been matched with a passenger, the liability must be divided equally35among all of the applicable insurance policies that specifically36provide coverage for transportation network company services.37

(9) In an accident or claims coverage investigation, a38transportation network company or its insurer must cooperate with a39private passenger automobile insurance policy insurer and other40

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insurers that are involved in the claims coverage investigation to1facilitate the exchange of information, including the provision of2(a) dates and times at which an accident occurred that involved a3participating driver and (b) within ten business days after receiving4a request, a copy of the company's electronic record showing the5precise times that the participating driver logged on and off the6transportation network company's digital network or software7application on the day the accident or other loss occurred. The8transportation network company or its insurer must retain all data,9communications, or documents related to insurance coverage or10accident details for a period of not less than the applicable11statutes of limitation, plus two years from the date of an accident12to which those records pertain.13

(10) This section does not modify or abrogate any otherwise14applicable insurance requirement set forth in Title 48 RCW.15

(11) After July 1, 2016, an insurance company regulated under16Title 48 RCW may not deny an otherwise covered claim arising17exclusively out of the personal use of the private passenger18automobile solely on the basis that the insured, at other times, used19the private passenger automobile covered by the policy to provide20transportation network company services.21

(12) Except as otherwise provided in subsections (13) and (14) of22this section, every transportation network company, transportation23network company driver, and vehicle operated by a transportation24network company driver is subject to exclusive control, supervision,25and regulation by the department; however, enforcement of this26chapter, including department rules adopted under this chapter, may27be by the department and any law enforcement officer. Nothing in this28chapter shall be construed as authorizing the adoption of local29ordinances providing for local regulation of transportation network30companies, transportation network company drivers, or vehicles31operated by transportation network company drivers. However, this32subsection (12) does not apply to standard business licenses and the33levying of business-related taxes at the local level.34

(13) A city with a population of more than one hundred fifty35thousand and a county with a population of more than four hundred36forty thousand may impose regulatory fees on a transportation network37company to cover the costs of enforcement of this chapter. Any fee38imposed on a transportation network company under this subsection39

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(13) may not exceed the maximum permit fee required under section 51of this act.2

(14) A port district that operates an airport may (a) require a3transportation network company to obtain additional approval to4provide services, such as a permit or license, before operating5within the port district, (b) impose regulatory or use fees related6to the operation of the transportation network company within the7port district as otherwise allowed by law, and (c) impose monetary8penalties for the violation of any of the provisions of this chapter9or any supplemental rules not in conflict with this chapter adopted10by the port district to ensure safe and reliable transportation11network company services within the port district. If a port district12exercises the authority provided under this subsection, it must13provide quarterly reports to the department regarding its regulatory14activities.15

(15) A port district that operates an airport must consider all16for hire operators, including taxicab companies, on an equal basis in17the request for proposals process used to determine which entity or18entities will be contracted to provide on-demand commercial19transportation services to and from the airport. Nothing in this20subsection (15) restricts the criteria used by the port district in21determining which entity or entities will be contracted to provide22commercial transportation services to and from the airport.23

NEW SECTION. Sec. 4. (1) The following requirements apply to24the provision of services:25

(a) A driver may not solicit or accept the on-demand summoning of26a ride.27

(b) A transportation network company must make available to28prospective passengers and drivers the method by which the29transportation network company calculates fares or the applicable30rates being charged and an option to receive an estimated fare.31

(c) Upon completion of a prearranged ride, a transportation32network company must transmit to the passenger an electronic receipt,33either by electronic mail or by text message, which must document:34

(i) The point of origin and destination of the passenger's trip;35(ii) The total duration and distance of the passenger's trip;36(iii) The total fare paid, including the base fare and any37

additional charges incurred or distance traveled or duration of the38passenger's trip; and39

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(iv) The driver's first name and license plate number.1(d) Before permitting a person to act as a driver on its digital2

network or software application, a transportation network company3must confirm that the person is at least twenty-one years of age and4possesses:5

(i) A valid driver's license;6(ii) Proof of private passenger automobile insurance;7(iii) Proof that the vehicle is registered in Washington; and8(iv) Pursuant to rules adopted by the department, proof that the9

person has certified that he or she does not experience any condition10that interferes with his or her ability to safely provide services11pursuant to this chapter.12

(e) A driver may not provide prearranged rides for more than13twelve consecutive hours or more than twelve hours in any twenty-four14hour period, except that a driver may finish a prearranged ride that15began before either time restriction.16

(f) A transportation network company must implement an17intoxicating substance policy for drivers that disallows any amount18of intoxication of the driver while providing services. The19transportation network company must include on its web site and20mobile device application software a notice concerning the21transportation network company's intoxicating substance policy.22

(g)(i) Prior to providing transportation network company23services, a transportation network company must require every24personal vehicle to undergo a uniform vehicle safety inspection25performed by an approved mechanic who must certify in writing that26the vehicle is mechanically sound and fit for driving. The approved27mechanic must also certify in writing that the exterior markings28required under this section are legible and properly displayed.29

(ii) The safety inspection required under this subsection (1)(g)30must be conducted annually while the personal vehicle is being used31to provide transportation network company services and include an32inspection of the following:33

(A) Foot brakes;34(B) Emergency brakes;35(C) Steering mechanism;36(D) Windshield;37(E) Rear window and other glass;38(F) Windshield wipers;39(G) Headlights;40

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(H) Taillights;1(I) Turn indicator lights;2(J) Stop lights;3(K) Front seat adjustment mechanism;4(L) The opening, closing, and locking capability of the doors;5(M) Horn;6(N) Speedometer;7(O) Bumpers;8(P) Muffler and exhaust system;9(Q) Tire conditions, including tread depth;10(R) Interior and exterior rearview mirrors; and11(S) Safety belts.12(iii) A transportation network company or a third party must13

retain inspection records for at least fourteen months after an14inspection was conducted for each personal vehicle used by a driver.15

(iv) For purposes of this subsection (1)(g), "approved mechanic"16means a mechanic or technician who is certified with the national17institute for automotive service excellence and does not own, lease,18or drive a taxicab, for hire vehicle, or transportation network19company-endorsed vehicle.20

(h) A personal vehicle must be no more than ten years old, have21at least four doors, and be designed to carry no more than eight22passengers, including the driver.23

(i)(i) A transportation network company must make the following24disclosures to a prospective driver in the prospective driver's terms25of service:26

WHILE OPERATING ON THE TRANSPORTATION NETWORK COMPANY'S DIGITAL27NETWORK OR SOFTWARE APPLICATION, YOUR PRIVATE PASSENGER AUTOMOBILE28INSURANCE POLICY MIGHT NOT AFFORD LIABILITY, UNDERINSURED MOTORIST,29PERSONAL INJURY PROTECTION, COMPREHENSIVE OR COLLISION COVERAGE,30DEPENDING ON THE TERMS OF THE POLICY.31

IF THE VEHICLE THAT YOU PLAN TO USE TO PROVIDE TRANSPORTATION32NETWORK COMPANY SERVICES FOR OUR TRANSPORTATION NETWORK COMPANY HAS A33LIEN AGAINST IT, YOU MUST NOTIFY THE LIENHOLDER THAT YOU WILL BE34USING THE VEHICLE FOR TRANSPORTATION NETWORK COMPANY SERVICES THAT35MAY VIOLATE THE TERMS OF YOUR CONTRACT WITH THE LIENHOLDER.36

(ii) The prospective driver must acknowledge the terms of service37electronically or by signature.38

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(j) A transportation network company must make available to a1passenger a customer support telephone number on its digital network,2software application, or web site for passenger inquiries or3complaints.4

(k)(i) A transportation network company may not disclose to a5third party any personally identifiable information concerning the6user of the transportation network company's digital network or7software application, unless:8

(A) The transportation network company obtains the user's consent9to disclose personally identifiable information;10

(B) Disclosure is necessary to comply with a legal obligation; or11(C) Disclosure is necessary to protect or defend the terms and12

conditions for use of the service or to investigate violations of the13terms and conditions.14

(ii) The limitation on disclosure does not apply to the15disclosure of aggregated user data. In addition, a transportation16network company may share a passenger's first name or telephone17number, or both, with the driver providing a prearranged ride to the18passenger in order to facilitate correct identification of the19passenger by the driver or to facilitate communication between the20passenger and the driver.21

(iii) The department may revoke a transportation network22company's permit upon the department's finding that the company23knowingly or negligently violated the passenger privacy provisions of24this subsection (1)(k).25

(2) Each transportation network company must require that each26personal vehicle providing transportation network company services27display a plainly visible exterior marking that identifies the28personal vehicle as one providing such services.29

(3)(a) Before a person is permitted to act as a driver through30use of a transportation network company's digital network or software31application, the person must undergo a criminal history record check32for conviction records performed by the Washington state patrol or an33entity approved by the department that meets standards adopted by34rule by the department. A driver must undergo a criminal history35record check every year while serving as a driver. Either the entity36performing the criminal history record check or the transportation37network company must retain the results of a criminal history record38check for each driver that provides services for the transportation39network company until five years after the criminal history record40

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check was conducted or until the acquisition of an updated criminal1history record check, whichever occurs first. A criminal history2record check must remain confidential, may be used only for the3purposes of this subsection (3), and is not subject to the disclosure4requirements under chapter 42.56 RCW.5

(b) A person who has been convicted of driving under the6influence of drugs or alcohol in the previous five years before7applying to become a driver may not serve as a driver.8

(c)(i) If the criminal history record check reveals that the9person has ever been convicted of the following offenses, the person10may not serve as a driver:11

(A) A sex offense, as described in chapters 9.68A and 9A.44 RCW;12(B) A violent offense, as defined in RCW 9.94A.030.13(ii) A person who has been convicted of a comparable offense to14

the offenses listed in (c)(i) of this subsection in another state may15not serve as a driver.16

(iii) If the criminal history record check reveals that the17person has ever been convicted of the following felony offenses in18the previous five years before applying to become a driver, the19person may not serve as a driver:20

(A) A felony offense involving fraud, as described in chapters219.45 and 9A.60 RCW;22

(B) Felony burglary, trespass, or vehicle prowling, as described23in chapter 9A.52 RCW;24

(C) Felony theft, robbery, extortion, or possession of stolen25property, as described in chapter 9A.56 RCW.26

(iv) A person who has been convicted of a comparable offense to27the offenses listed in (c)(iii) of this subsection in another state28in the previous five years before applying to become a driver may not29serve as a driver.30

(4)(a) Before permitting an individual to act as a driver on its31digital network or software application, a transportation network32company must obtain and review the individual's driving record.33

(b) An individual with the following violations may not serve as34a driver:35

(i) More than three moving violations within the three-year36period preceding the individual's application to serve as a driver;37or38

(ii) A violation for reckless driving under RCW 46.61.500;39vehicular homicide under RCW 46.61.520; vehicular assault under RCW40

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46.61.522; negligent driving in the first or second degree under RCW146.61.5249, 46.61.525, or 46.61.526; driving without a license under2RCW 46.20.005; or driving with a revoked license under RCW 46.20.3423or 46.20.345.4

(c) A transportation network company or a third party must retain5the driving record for each driver that provides services for the6transportation network company for at least three years.7

(5) If any person files a complaint with the department against a8transportation network company or driver, the department may inspect9the transportation network company's records as reasonably necessary10to investigate and resolve the complaint.11

(6)(a) Except for a trip whose destination is more than thirty-12five miles from where the passenger is picked up, a transportation13network company and transportation network company drivers must14provide services to the public in a nondiscriminatory manner,15regardless of geographic location of the departure point or16destination. Once a passenger is in the vehicle, a driver may not17refuse a passenger's request to use a toll facility if the use of the18facility would facilitate an efficient route of travel to the19passenger's destination; however, an additional charge may be imposed20by the company to cover any applicable toll. A transportation network21company or transportation network company driver may not refuse22service or impose additional charges or conditions based on a23passenger's race, religion, ethnicity, gender, sexual orientation,24gender identity, or disability. Once a passenger and driver have been25matched for the purpose of a prearranged ride, a driver may not26refuse to transport a passenger, unless:27

(i) The passenger is acting in an unlawful, disorderly, or28endangering manner; or29

(ii) The passenger is unable to care for himself or herself and30is not in the charge of a responsible companion.31

(b) A driver must permit a service animal to accompany a32passenger on a prearranged ride.33

(c)(i) If a passenger with physical or mental disabilities34requires the use of mobility equipment, a driver must store such35equipment in the vehicle during a prearranged ride, if the vehicle is36reasonably capable of doing so. If the driver is unable to store a37passenger's mobility equipment in the driver's vehicle, the driver38must refer the passenger to another driver or transportation service39

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with a vehicle that is equipped to accommodate such equipment, and1may not charge the passenger a cancellation fee.2

(ii) If a passenger is traveling with a child who requires the3use of a child restraint system under RCW 46.61.687, a driver must4allow the passenger to temporarily install the restraint system in5the personal vehicle, if the vehicle is reasonably capable of6accepting it. If the child restraint system is unable to be7temporarily installed in the vehicle, the driver must refer the8passenger to another driver or transportation service with a vehicle9that is equipped to accommodate such a system, and may not charge the10passenger a cancellation fee.11

(7) Within ten days of receiving a complaint about a driver's12alleged violation of subsection (6) of this section, the department13must report the complaint to the transportation network company for14which the driver provides services.15

(8) A driver must immediately report to the transportation16network company any refusal to transport a passenger pursuant to17subsection (6)(a) of this section, and the transportation network18company must annually report all such refusals to the department in a19form and manner determined by the department.20

NEW SECTION. Sec. 5. (1) A transportation network company may21not operate without first having obtained a permit from the22department. The department must require this permit to be renewed23annually.24

(2) The department must issue a permit to each transportation25network company that meets the requirements of this chapter and pays26to the department the fees required under subsection (3) of this27section. The department may adjust the annual permit fee by rule to28recover the department's direct and indirect costs associated with29implementing this chapter.30

(3)(a) A transportation network company must pay the following31fee to the department at the time of its initial application for a32permit:33

(i) Until July 1, 2016, the fee is one hundred thousand dollars;34and35

(ii) After July 1, 2016, the fee is five thousand dollars.36(b) Upon the annual renewal of a permit issued pursuant to this37

section, a transportation network company must pay the following38applicable renewal fee, depending on the number of drivers shown in39

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the transportation network company's most recent quarterly report1sent to the department pursuant to section 2(4) of this act:2

(i) For transportation network companies with ten or fewer3drivers, the annual renewal fee is five thousand dollars;4

(ii) For transportation network companies with between eleven and5one hundred drivers, the annual renewal fee is twenty thousand6dollars;7

(iii) For transportation network companies with between one8hundred one and one thousand drivers, the annual renewal fee is fifty9thousand dollars; and10

(iv) For transportation network companies with more than one11thousand drivers, the annual renewal fee is one hundred thousand12dollars.13

(4) The department must determine the form and manner of the14application for a transportation network company permit.15

(5) Consistent with section 2(1)(a) of this act, the department16may cancel, revoke, or suspend any permit issued under this chapter17on any of the following grounds:18

(a) The violation of any of the provisions of this chapter;19(b) The violation of an order, decision, rule, or requirement20

established by the department under this chapter;21(c) Failure of the transportation network company to pay a fee22

imposed on the company, including those imposed by a jurisdiction23under section 3 (13) and (14) of this act, within the time required24under law; or25

(d) Failure of the transportation network company to maintain26insurance coverage, if required under this chapter.27

(6) The department may deny an application under this chapter, or28refuse to renew the permit of a transportation network company, based29on a determination that the transportation network company has not30satisfied a civil penalty arising out of an administrative or31enforcement action brought by the department.32

NEW SECTION. Sec. 6. The transportation network company account33is created in the custody of the state treasurer. All moneys received34by the department pursuant to this chapter, and any interest earned35on investments in the account, must be deposited into the account.36Expenditures from the account may be used by the department for any37purpose related to the regulation of transportation network companies38that is consistent with this chapter. Only the director or the39

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director's designee may authorize expenditures from the account. The1account is subject to allotment procedures under chapter 43.88 RCW,2but an appropriation is not required for expenditures.3

NEW SECTION. Sec. 7. (1) The department may adopt all rules4specifically necessary to enforce this chapter.5

(2) The department must adopt rules requiring a transportation6network company to file with the department evidence of the7transportation network company's insurance policies required under8this chapter and proof of continued validity of these policies.9

NEW SECTION. Sec. 8. All personally identifiable information10collected under this chapter is exempt from disclosure under chapter1142.56 RCW.12

Sec. 9. RCW 18.235.020 and 2013 c 322 s 29 are each amended to13read as follows:14

(1) This chapter applies only to the director and the boards and15commissions having jurisdiction in relation to the businesses and16professions licensed under the chapters specified in this section.17This chapter does not apply to any business or profession not18licensed under the chapters specified in this section.19

(2)(a) The director has authority under this chapter in relation20to the following businesses and professions:21

(i) Auctioneers under chapter 18.11 RCW;22(ii) Bail bond agents and bail bond recovery agents under chapter23

18.185 RCW;24(iii) Camping resorts' operators and salespersons under chapter25

19.105 RCW;26(iv) Commercial telephone solicitors under chapter 19.158 RCW;27(v) Cosmetologists, barbers, manicurists, and estheticians under28

chapter 18.16 RCW;29(vi) Court reporters under chapter 18.145 RCW;30(vii) Driver training schools and instructors under chapter 46.8231

RCW;32(viii) Employment agencies under chapter 19.31 RCW;33(ix) For hire vehicle operators under chapter 46.72 RCW;34(x) Limousines under chapter 46.72A RCW;35(xi) Notaries public under chapter 42.44 RCW;36(xii) Private investigators under chapter 18.165 RCW;37

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(xiii) Professional boxing, martial arts, and wrestling under1chapter 67.08 RCW;2

(xiv) Real estate appraisers under chapter 18.140 RCW;3(xv) Real estate brokers and salespersons under chapters 18.854

and 18.86 RCW;5(xvi) Scrap metal processors, scrap metal recyclers, and scrap6

metal suppliers under chapter 19.290 RCW;7(xvii) Security guards under chapter 18.170 RCW;8(xviii) Sellers of travel under chapter 19.138 RCW;9(xix) Timeshares and timeshare salespersons under chapter 64.3610

RCW;11(xx) Transportation network companies under chapter 46.--- RCW12

(the new chapter created in section 17 of this act);13(xxi) Whitewater river outfitters under chapter 79A.60 RCW;14(((xxi))) (xxii) Home inspectors under chapter 18.280 RCW;15(((xxii))) (xxiii) Body artists, body piercers, and tattoo16

artists, and body art, body piercing, and tattooing shops and17businesses, under chapter 18.300 RCW; and18

(((xxiii))) (xxiv) Appraisal management companies under chapter1918.310 RCW.20

(b) The boards and commissions having authority under this21chapter are as follows:22

(i) The state board for architects established in chapter 18.0823RCW;24

(ii) The Washington state collection agency board established in25chapter 19.16 RCW;26

(iii) The state board of registration for professional engineers27and land surveyors established in chapter 18.43 RCW governing28licenses issued under chapters 18.43 and 18.210 RCW;29

(iv) The funeral and cemetery board established in chapter 18.3930RCW governing licenses issued under chapters 18.39 and 68.05 RCW;31

(v) The state board of licensure for landscape architects32established in chapter 18.96 RCW; and33

(vi) The state geologist licensing board established in chapter3418.220 RCW.35

(3) In addition to the authority to discipline license holders,36the disciplinary authority may grant or deny licenses based on the37conditions and criteria established in this chapter and the chapters38specified in subsection (2) of this section. This chapter also39governs any investigation, hearing, or proceeding relating to denial40

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of licensure or issuance of a license conditioned on the applicant's1compliance with an order entered under RCW 18.235.110 by the2disciplinary authority.3

Sec. 10. RCW 42.56.270 and 2014 c 192 s 6, 2014 c 174 s 5, and42014 c 144 s 6 are each reenacted and amended to read as follows:5

The following financial, commercial, and proprietary information6is exempt from disclosure under this chapter:7

(1) Valuable formulae, designs, drawings, computer source code or8object code, and research data obtained by any agency within five9years of the request for disclosure when disclosure would produce10private gain and public loss;11

(2) Financial information supplied by or on behalf of a person,12firm, or corporation for the purpose of qualifying to submit a bid or13proposal for (a) a ferry system construction or repair contract as14required by RCW 47.60.680 through 47.60.750 or (b) highway15construction or improvement as required by RCW 47.28.070;16

(3) Financial and commercial information and records supplied by17private persons pertaining to export services provided under chapters1843.163 and 53.31 RCW, and by persons pertaining to export projects19under RCW 43.23.035;20

(4) Financial and commercial information and records supplied by21businesses or individuals during application for loans or program22services provided by chapters 43.325, 43.163, 43.160, 43.330, and2343.168 RCW, or during application for economic development loans or24program services provided by any local agency;25

(5) Financial information, business plans, examination reports,26and any information produced or obtained in evaluating or examining a27business and industrial development corporation organized or seeking28certification under chapter 31.24 RCW;29

(6) Financial and commercial information supplied to the state30investment board by any person when the information relates to the31investment of public trust or retirement funds and when disclosure32would result in loss to such funds or in private loss to the33providers of this information;34

(7) Financial and valuable trade information under RCW 51.36.120;35(8) Financial, commercial, operations, and technical and research36

information and data submitted to or obtained by the clean Washington37center in applications for, or delivery of, program services under38chapter 70.95H RCW;39

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(9) Financial and commercial information requested by the public1stadium authority from any person or organization that leases or uses2the stadium and exhibition center as defined in RCW 36.102.010;3

(10)(a) Financial information, including but not limited to4account numbers and values, and other identification numbers supplied5by or on behalf of a person, firm, corporation, limited liability6company, partnership, or other entity related to an application for a7horse racing license submitted pursuant to RCW 67.16.260(1)(b),8marijuana producer, processor, or retailer license, liquor license,9gambling license, or lottery retail license;10

(b) Internal control documents, independent auditors' reports and11financial statements, and supporting documents: (i) Of house-banked12social card game licensees required by the gambling commission13pursuant to rules adopted under chapter 9.46 RCW; or (ii) submitted14by tribes with an approved tribal/state compact for class III gaming;15

(11) Proprietary data, trade secrets, or other information that16relates to: (a) A vendor's unique methods of conducting business; (b)17data unique to the product or services of the vendor; or (c)18determining prices or rates to be charged for services, submitted by19any vendor to the department of social and health services for20purposes of the development, acquisition, or implementation of state21purchased health care as defined in RCW 41.05.011;22

(12)(a) When supplied to and in the records of the department of23commerce:24

(i) Financial and proprietary information collected from any25person and provided to the department of commerce pursuant to RCW2643.330.050(8); and27

(ii) Financial or proprietary information collected from any28person and provided to the department of commerce or the office of29the governor in connection with the siting, recruitment, expansion,30retention, or relocation of that person's business and until a siting31decision is made, identifying information of any person supplying32information under this subsection and the locations being considered33for siting, relocation, or expansion of a business;34

(b) When developed by the department of commerce based on35information as described in (a)(i) of this subsection, any work36product is not exempt from disclosure;37

(c) For the purposes of this subsection, "siting decision" means38the decision to acquire or not to acquire a site;39

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(d) If there is no written contact for a period of sixty days to1the department of commerce from a person connected with siting,2recruitment, expansion, retention, or relocation of that person's3business, information described in (a)(ii) of this subsection will be4available to the public under this chapter;5

(13) Financial and proprietary information submitted to or6obtained by the department of ecology or the authority created under7chapter 70.95N RCW to implement chapter 70.95N RCW;8

(14) Financial, commercial, operations, and technical and9research information and data submitted to or obtained by the life10sciences discovery fund authority in applications for, or delivery11of, grants under chapter 43.350 RCW, to the extent that such12information, if revealed, would reasonably be expected to result in13private loss to the providers of this information;14

(15) Financial and commercial information provided as evidence to15the department of licensing as required by RCW 19.112.110 or1619.112.120, except information disclosed in aggregate form that does17not permit the identification of information related to individual18fuel licensees;19

(16) Any production records, mineral assessments, and trade20secrets submitted by a permit holder, mine operator, or landowner to21the department of natural resources under RCW 78.44.085;22

(17)(a) Farm plans developed by conservation districts, unless23permission to release the farm plan is granted by the landowner or24operator who requested the plan, or the farm plan is used for the25application or issuance of a permit;26

(b) Farm plans developed under chapter 90.48 RCW and not under27the federal clean water act, 33 U.S.C. Sec. 1251 et seq., are subject28to RCW 42.56.610 and 90.64.190;29

(18) Financial, commercial, operations, and technical and30research information and data submitted to or obtained by a health31sciences and services authority in applications for, or delivery of,32grants under RCW 35.104.010 through 35.104.060, to the extent that33such information, if revealed, would reasonably be expected to result34in private loss to providers of this information;35

(19) Information gathered under chapter 19.85 RCW or RCW3634.05.328 that can be identified to a particular business;37

(20) Financial and commercial information submitted to or38obtained by the University of Washington, other than information the39university is required to disclose under RCW 28B.20.150, when the40

p. 20 ESSB 5550

information relates to investments in private funds, to the extent1that such information, if revealed, would reasonably be expected to2result in loss to the University of Washington consolidated endowment3fund or to result in private loss to the providers of this4information; ((and))5

(21) Market share data submitted by a manufacturer under RCW670.95N.190(4); ((and))7

(22) Financial information supplied to the department of8financial institutions or to a portal under RCW 21.20.883, when filed9by or on behalf of an issuer of securities for the purpose of10obtaining the exemption from state securities registration for small11securities offerings provided under RCW 21.20.880 or when filed by or12on behalf of an investor for the purpose of purchasing such13securities; and14

(23) The quarterly reports submitted by transportation network15companies pursuant to section 2(4) of this act and any records16provided to the department of licensing to facilitate the enforcement17of chapter 46.--- RCW (the new chapter created in section 17 of this18act).19

Sec. 11. RCW 46.72.010 and 1996 c 87 s 18 are each amended to20read as follows:21

When used in this chapter:22(1) The term "for hire vehicle" includes all vehicles used for23

the transportation of passengers for compensation, except auto24stages, school buses operating exclusively under a contract to a25school district, ride-sharing vehicles under chapter 46.74 RCW,26limousine carriers licensed under chapter 46.72A RCW, personal27vehicles used to provide transportation network company services28under chapter 46.--- RCW (the new chapter created in section 17 of29this act), vehicles used by nonprofit transportation providers for30((elderly or handicapped)) persons with special transportation needs31and their attendants under chapter 81.66 RCW, vehicles used by auto32transportation companies licensed under chapter 81.68 RCW, vehicles33used to provide courtesy transportation at no charge to and from34parking lots, hotels, and rental offices, and vehicles used by35charter party carriers of passengers and excursion service carriers36licensed under chapter 81.70 RCW;37

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(2) The term "for hire operator" means and includes any person,1concern, or entity engaged in the transportation of passengers for2compensation in for hire vehicles.3

Sec. 12. RCW 51.12.020 and 2013 c 141 s 3 are each amended to4read as follows:5

The following are the only employments which shall not be6included within the mandatory coverage of this title:7

(1) Any person employed as a domestic servant in a private home8by an employer who has less than two employees regularly employed9forty or more hours a week in such employment.10

(2) Any person employed to do gardening, maintenance, or repair,11in or about the private home of the employer. For the purposes of12this subsection, "maintenance" means the work of keeping in proper13condition, "repair" means to restore to sound condition after damage,14and "private home" means a person's place of residence.15

(3) A person whose employment is not in the course of the trade,16business, or profession of his or her employer and is not in or about17the private home of the employer.18

(4) Any person performing services in return for aid or19sustenance only, received from any religious or charitable20organization.21

(5) Sole proprietors or partners.22(6) Any child under eighteen years of age employed by his or her23

parent or parents in agricultural activities on the family farm.24(7) Jockeys while participating in or preparing horses for race25

meets licensed by the Washington horse racing commission pursuant to26chapter 67.16 RCW.27

(8)(a) Except as otherwise provided in (b) of this subsection,28any bona fide officer of a corporation voluntarily elected or29voluntarily appointed in accordance with the articles of30incorporation or bylaws of the corporation, who at all times during31the period involved is also a bona fide director, and who is also a32shareholder of the corporation. Only such officers who exercise33substantial control in the daily management of the corporation and34whose primary responsibilities do not include the performance of35manual labor are included within this subsection.36

(b) Alternatively, a corporation that is not a "public company"37as defined in RCW 23B.01.400 may exempt eight or fewer bona fide38officers, who are voluntarily elected or voluntarily appointed in39

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accordance with the articles of incorporation or bylaws of the1corporation and who exercise substantial control in the daily2management of the corporation, from coverage under this title without3regard to the officers' performance of manual labor if the exempted4officer is a shareholder of the corporation, or may exempt any number5of officers if all the exempted officers are related by blood within6the third degree or marriage. If a corporation that is not a "public7company" elects to be covered under subsection (8)(a) of this8section, the corporation's election must be made on a form prescribed9by the department and under such reasonable rules as the department10may adopt.11

(c) Determinations respecting the status of persons performing12services for a corporation shall be made, in part, by reference to13Title 23B RCW and to compliance by the corporation with its own14articles of incorporation and bylaws. For the purpose of determining15coverage under this title, substance shall control over form, and16mandatory coverage under this title shall extend to all workers of17this state, regardless of honorary titles conferred upon those18actually serving as workers.19

(d) A corporation may elect to cover officers who are exempted by20this subsection in the manner provided by RCW 51.12.110.21

(9) Services rendered by a musician or entertainer under a22contract with a purchaser of the services, for a specific engagement23or engagements when such musician or entertainer performs no other24duties for the purchaser and is not regularly and continuously25employed by the purchaser. A purchaser does not include the leader of26a group or recognized entity who employs other than on a casual basis27musicians or entertainers.28

(10) Services performed by a newspaper vendor, carrier, or29delivery person selling or distributing newspapers on the street, to30offices, to businesses, or from house to house and any freelance news31correspondent or "stringer" who, using his or her own equipment,32chooses to submit material for publication for free or a fee when33such material is published.34

(11) Services performed by an insurance producer, as defined in35RCW 48.17.010, or a surplus line broker licensed under chapter 48.1536RCW.37

(12) Services performed by a booth renter. However, a person38exempted under this subsection may elect coverage under RCW3951.32.030.40

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(13) Members of a limited liability company, if either:1(a) Management of the company is vested in its members, and the2

members for whom exemption is sought would qualify for exemption3under subsection (5) of this section were the company a sole4proprietorship or partnership; or5

(b) Management of the company is vested in one or more managers,6and the members for whom the exemption is sought are managers who7would qualify for exemption under subsection (8) of this section were8the company a corporation.9

(14) A transportation network company driver providing10transportation network company services unless a transportation11network company and the transportation network company driver12expressly agree otherwise in writing. For purposes of this13subsection, a transportation network company driver qualifies under14this subsection only if:15

(a) The transportation network company does not prescribe16specific hours during which a transportation network company driver17must be logged into the transportation network company's digital18platform or establish a minimum number of (i) prearranged rides19accepted, (ii) hours worked, or (iii) miles traveled;20

(b) The transportation network company imposes no restrictions on21the transportation network company driver's ability to utilize22digital platforms from other transportation network companies;23

(c) The transportation network company does not assign the24transportation network company driver a particular territory in which25transportation network company services can be provided; and26

(d) The transportation network company does not restrict a27transportation network company driver from engaging in any other28occupation or business.29

(15) For hire vehicle operators under chapter 46.72 RCW who own30or lease the for hire vehicle, chauffeurs under chapter 46.72A RCW31who own or lease the limousine, and operators of taxicabs under32chapter 81.72 RCW who own or lease the taxicab. An owner or lessee33may elect coverage in the manner provided by RCW 51.32.030.34

Sec. 13. RCW 81.72.240 and 2011 c 190 s 8 are each amended to35read as follows:36

(1) By September 1, 2015, and at least every two years37thereafter, any city, town, county, or port district setting the38rates charged for taxicab services under this chapter must adjust39

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rates to accommodate ((changes)) increases or decreases in the cost1of industrial insurance ((or in other industry-wide costs)).2

(2) By September 1, 2015, and at least every two years3thereafter, any city, town, county, or port district regulating lease4rates under this chapter must adjust rates to accommodate increases5or decreases in the cost of industrial insurance. Any changes in6lease rates take effect upon entry into a new lease.7

(3) Any business that as owner leases a taxicab licensed under8this chapter to a for hire operator must make a reasonable effort to9train the for hire operator in motor vehicle operation and safety10requirements and monitor operator compliance. Monitoring operator11compliance may include the use of vehicle operator monitoring12cameras.13

Sec. 14. RCW 43.79A.040 and 2013 c 251 s 5 and 2013 c 88 s 1 are14each reenacted and amended to read as follows:15

(1) Money in the treasurer's trust fund may be deposited,16invested, and reinvested by the state treasurer in accordance with17RCW 43.84.080 in the same manner and to the same extent as if the18money were in the state treasury, and may be commingled with moneys19in the state treasury for cash management and cash balance purposes.20

(2) All income received from investment of the treasurer's trust21fund must be set aside in an account in the treasury trust fund to be22known as the investment income account.23

(3) The investment income account may be utilized for the payment24of purchased banking services on behalf of treasurer's trust funds25including, but not limited to, depository, safekeeping, and26disbursement functions for the state treasurer or affected state27agencies. The investment income account is subject in all respects to28chapter 43.88 RCW, but no appropriation is required for payments to29financial institutions. Payments must occur prior to distribution of30earnings set forth in subsection (4) of this section.31

(4)(a) Monthly, the state treasurer must distribute the earnings32credited to the investment income account to the state general fund33except under (b), (c), and (d) of this subsection.34

(b) The following accounts and funds must receive their35proportionate share of earnings based upon each account's or fund's36average daily balance for the period: The Washington promise37scholarship account, the Washington advanced college tuition payment38program account, the accessible communities account, the community39

p. 25 ESSB 5550

and technical college innovation account, the agricultural local1fund, the American Indian scholarship endowment fund, the foster care2scholarship endowment fund, the foster care endowed scholarship trust3fund, the contract harvesting revolving account, the Washington state4combined fund drive account, the commemorative works account, the5county enhanced 911 excise tax account, the toll collection account,6the developmental disabilities endowment trust fund, the energy7account, the fair fund, the family leave insurance account, the food8animal veterinarian conditional scholarship account, the fruit and9vegetable inspection account, the future teachers conditional10scholarship account, the game farm alternative account, the GET ready11for math and science scholarship account, the Washington global12health technologies and product development account, the grain13inspection revolving fund, the industrial insurance rainy day fund,14the juvenile accountability incentive account, the law enforcement15officers' and firefighters' plan 2 expense fund, the local tourism16promotion account, the multiagency permitting team account, the17pilotage account, the produce railcar pool account, the regional18transportation investment district account, the rural rehabilitation19account, the stadium and exhibition center account, the youth20athletic facility account, the self-insurance revolving fund, the21children's trust fund, the Washington horse racing commission22Washington bred owners' bonus fund and breeder awards account, the23Washington horse racing commission class C purse fund account, the24individual development account program account, the Washington horse25racing commission operating account, the life sciences discovery26fund, the Washington state heritage center account, the reduced27cigarette ignition propensity account, the center for childhood28deafness and hearing loss account, the school for the blind account,29the Millersylvania park trust fund, the public employees' and30retirees' insurance reserve fund, the transportation network company31account, and the radiation perpetual maintenance fund.32

(c) The following accounts and funds must receive eighty percent33of their proportionate share of earnings based upon each account's or34fund's average daily balance for the period: The advanced right-of-35way revolving fund, the advanced environmental mitigation revolving36account, the federal narcotics asset forfeitures account, the high37occupancy vehicle account, the local rail service assistance account,38and the miscellaneous transportation programs account.39

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(d) Any state agency that has independent authority over accounts1or funds not statutorily required to be held in the custody of the2state treasurer that deposits funds into a fund or account in the3custody of the state treasurer pursuant to an agreement with the4office of the state treasurer shall receive its proportionate share5of earnings based upon each account's or fund's average daily balance6for the period.7

(5) In conformance with Article II, section 37 of the state8Constitution, no trust accounts or funds shall be allocated earnings9without the specific affirmative directive of this section.10

NEW SECTION. Sec. 15. The following acts or parts of acts are11each repealed:12

(1) RCW 46.72.073 (Certificate suspension or revocation—Failure13to pay industrial insurance premiums—Rules—Cooperative agreements)14and 2011 c 190 s 5;15

(2) RCW 46.72A.053 (Certificate suspension or revocation—Failure16to pay industrial insurance premiums—Rules—Cooperative agreements)17and 2011 c 190 s 6;18

(3) RCW 51.12.180 (For hire vehicle businesses and operators—19Findings—Declaration) and 2011 c 190 s 1;20

(4) RCW 51.12.183 (For hire vehicle businesses and operators—21Mandatory coverage—Definitions) and 2011 c 190 s 2;22

(5) RCW 51.12.185 (For hire vehicle owners—Retrospective rating23program) and 2011 c 190 s 4;24

(6) RCW 51.16.240 (For hire vehicle businesses and operators—25Basis for premiums—Rules) and 2011 c 190 s 3; and26

(7) RCW 81.72.230 (License suspension or revocation—Failure to27pay industrial insurance premiums—Rules—Cooperative agreements) and282011 c 190 s 7.29

NEW SECTION. Sec. 16. If any provision of this act or its30application to any person or circumstance is held invalid, the31remainder of the act or the application of the provision to other32persons or circumstances is not affected.33

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NEW SECTION. Sec. 17. Sections 1 through 8 of this act1constitute a new chapter in Title 46 RCW.2

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